Customers will be able to place bets on arcade games at Dave & Buster's.

• Dave & Buster's is introducing a new feature for its loyalty members, allowing them to place bets on its games.
• Arcade games will allow adults aged 18 and above to place real money bets with friends.
• The technology is expected to be available in the coming months.

The arcade giant is introducing social wagering on its app, elevating its games to a new level.

Soon, customers will be able to place a friendly $5 bet on a Hot Shots basketball game, Skee-Ball competition, or any other arcade game through the company's app. The betting function is expected to launch in the coming months.

Since its inception in 1982, Dave & Buster's has grown to over 222 venues across North America, providing a range of activities including bowling, laser tag, and virtual reality. The company boasts five million loyalty members and 30 million unique visitors annually. Additionally, Dave & Buster's stock has experienced a remarkable increase of over 50% in the past year.

By introducing digital gamification, Dave & Buster's could increase engagement among its customer base and encourage loyalty members to compete with one another for rewards. This could result in customers spending more time and money at the venues.

Dave and Buster's is using technology by gamification software company Lucra.

"We are thrilled to collaborate with Lucra to offer our customers an exciting new gaming platform," said Simon Murray, senior vice president of entertainment and attractions at Dave & Buster's. "This new partnership provides our loyalty members with real-time, unmatched gaming experiences, and underscores our dedication to enhancing our customer experience through advanced, cutting-edge technology."

In 2019, Dylan Robbins and Michael Madding, both Stanford Graduate School of Business classmates, founded Lucra, a software platform that enables users to compete for real money in friendly contests. Prior to launching Lucra, Robbins and Madding had previously worked together at Goldman Sachs.

"Lucra assists our partners in boosting user adoption, retention, and engagement while also introducing new revenue streams to their business, as stated by Robbins, CEO of Lucra," said Robbins, CEO of Lucra.

The company, which includes billionaire investor Marc Lasry, former and current professional athletes John Isner and Julie and Zach Ertz, along with the Raptor Group and SeventySix Capital, has raised about $14 million to capitalize on the recreational wagers taking place between peers during the incredible growth of legal sports betting.

Madding, Lucra's chief operating officer, stated that they are developing a new type of digital experience for individuals within their ecosystems. This will encourage them to interact in a new manner and spend more time and money.

Lucra claims that its skill-based games are not subject to the same licensing and regulatory requirements as games of chance, and the company avoids using terms like "bet" or "wager" to describe its games.

"We use real-money contests or challenges," Madding said.

In 44 states, players aged 18 and above can participate in Lucra's contests.

The gambling industry has a $6 billion social betting sector, as reported by gaming research firm Eilers & Krejcik. Numerous companies, including Fliff and ReBet, are attempting to replicate the success of the gambling industry and target a younger demographic.

Lucra recently struck a deal with Dupr, the pickleball ratings system, and TennisOne, a tennis app, to enable players to compete against one another for real money. With over 150,000 downloads, Lucra's app has facilitated more than one million unique contests on the platform and collected over $20 million in handle, according to the company.

Robbins stated that whether playing pickleball with friends or golfing on weekends, our partners help to enhance and digitize the experience.